The proposed project is a USD 130 million senior secured loan to OOO News Outdoor Rus (the company), the largest “out-of-home” advertising media operator in the Commonwealth of Independent States. The loan will be used to facilitate creation of a pan-regional outdoor advertising network spanning several former Soviet republics by the company through acquisition of several local outdoor operators, integrating them into one unified pan-regional outdoor advertising network and making follow-on investments to fund capital expenditure across the region.
The proposed project will build on the original Bank financings of the company and will facilitate the restructuring of the nascent CIS outdoor advertising industry, which is excessively fragmented and dominated by inefficient small stand-alone local companies. As advertising promotes competition, access to information, and is a key element of any modern market economy, the project will support further development of an essential and efficient outdoor advertising infrastructure across the CIS necessary for development of a wide range of industries in each country and inter- and intra-country commerce. This financing will also strengthen the position of outdoor in the region as a viable and cost-effective advertising media.
The project will have a high demonstration effect. As the EBRD provides debt financing to facilitate the entry of the region’s leading outdoor operator into smaller CIS markets, it will send a signal of the Bank’s confidence in the viability of these advertising markets and help open the whole CIS outdoor advertising industry to external financing. The proposed financing will reinforce the connection between good practices of the company and access to external financing. The company’s expansion is spearheading high standards of transparency in the sector across the whole region and, as such it will have an overall positive impact on the whole CIS outdoor advertising industry.
OOO News Outdoor Rus, a limited liability company organised in the Russian Federation, is the largest “out-of-home” advertising media operator in Russia offering billboards, street furniture, transit and point-of-sale advertising. The company is majority-owned by a joint venture company created by tThe News Corporation Limited and a private equity fund managed by Capital International Inc.
The proposed financing consists of an A Loan for the Bank’s own account in the amount of up to USD 40 million with the participating banks providing the balance.
Total project costs are estimated as USD 173 million. The balance will be financed by the internally generated cash and existing cash balances of the Company.
This Project was screened C/1.
There are unlikely to be any significant environmental issues associated with this project. Main issues associated with outdoor advertisement business are visual effects and compliance with statutory and other outdoor advertising requirements. Environmental due diligence conducted for the previous News Outdoor projects in 2003 and 2004 confirmed that, apart from standard land use planning requirements, permits and the planning and installation of advertising units, there are no environmental issues associated with this business.
The company also confirmed that News Outdoors’ operations are in full compliance with the Advertising Committee and relevant municipal bodies' specifications and standards associated with the Russian outdoor advertising industry. The company is required to continue to comply with Russian and EU environmental, health and safety standards and requirements and local and national public consultation requirements as well as to submit the Bank an annual environmental report.
Mr. Russell Hoare, Chief Financial Officer
News Outdoor Rus
PO Box 86, 80 Leningradsky prospect
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.